South African fintech and alternative funding provider Sourcefin, which provides access to finance and specialist supply chain support for small and medium-sized enterprises (SMMEs), has secured ZAR150 million (US$8.2 million) in funding from Futuregrowth Asset Management.
Founded in 2020, Sourcefin is an enabler of the forgotten SMME and addresses the critical gap in SMME financing, empowering businesses to overcome working capital challenges and successfully fulfil public and private sector purchase orders.
Its ZAR150 million (US$8.2 million) comes from Futuregrowth’s High Growth Developmental Equity Fund (HGDEF), further cementing the firm’s strategy in supporting high-growth businesses, including the likes of hearX, Yoco, Pineapple, Retail Capital, Ozow and Cash Connect.
“There is no doubt about the massive impact that well-supported SMMEs can have on our country,” says Joshua Kadish, Co-Founder, Director and CEO of Sourcefin. “With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”
“The SMME sector is vital for South Africa’s economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders,” said Amrish Narrandes, head of private equity and venture capital at Futuregrowth.
“Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfilment while maintaining strong financial performance made this a compelling investment opportunity.”
